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Discussion 1

22/08/2020 Client: sathvik2009 Deadline: 10 Days

 


News Item for Week 1 Forum: 1 post: 


Each week, you will evaluate the economic factors at play in the posted news item. The goal is to be able to identify - and make sense of - real world events in terms of the models and concepts that we are learning each week. Don't worry that you are not expert at this - it requires different 'mental muscles' than doing textbook problems, and everyone will be at a different 'place' in their skill and insight. And that is why we do it - to get some hands-on exercise in applying what we are learning.


Post 1: Briefly, give your own analysis of the economic content of the article, as relates to our current week's assignments - do not summarize the article, as everyone has read it.


Make sure to list the article on which you are analyzing. Write a minimum of 100 words.


No PLAGIARISM !!!!!


Write this in your own words


Chapter 1 & 2 in the book


Homework Part I: Understanding Economic Models: (submit answers)


1 What is a theory, according to the text?


2 Define normative and positive statements. (notes)


3 Explain the meaning of fallacy of causation and fallacy of composition. (notes)


4 Name and explain one major limitation of economic analysis using models. (notes)


5 In the economic model of supply and demand, what are the two key factors that determine market outcomes? (Refer to the axes on the supply and demand graph.)


6 Define ceteris paribus. What does an analysis of price and quantity “ceteris paribus” imply about other factors that could impact supply and demand?


7 What is the relationship of regulations to market economies, according to the text?


8 What is scarcity, and what does it imply for individual and societal choice, according to the text?


9 What is opportunity cost, according to the text?


10 What is marginal analysis? (notes)


11 What is utility, and the law of diminishing utility?


12 What is a sunk cost?


13 What is the invisible hand, and what market behavior does it imply?


Homework Part II: Reading Supply and Demand Graphs: (submit answers)


14. Explain the difference between: 


a) supply and quantity supplied


b) demand and quantity demanded


15. Define market equilibrium. What is the relationship of quantity demanded to quantity supplied at equilibrium? What is the relationship of the supply and demand curves at equilibrium?


16. Using a supply and demand graph, explain:


a) a shortage of a good


b) a surplus of a good


(Compare each to the quantity supplied, quantity demanded and price at the market equilibrium.)


17. When a good is in short supply, a price increase may bring the market back to equilibrium. Explain why.


Homework Part III: Representing market change with graphs: (submit answers)


18. Illustrate how price, quantity, supply, and demand are represented graphically.


19. Use a supply and demand graph to demonstrate how an increase in price will impact the quantity demanded and quantity supplied of a good.


20. How will a drop in a good’s price impact:


a) Quantity demanded of the good ___________________________________


b) Demand for the good ___________________________________________


c) Quantity supplied of the good ____________________________________


d) Supply of the good _____________________________________________

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